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Shipmaker Huntington Falls on Profit Miss: Washington Mover

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Nov. 8 (Bloomberg) -- Huntington Ingalls Industries Inc. fell after the U.S. Navy’s sole builder of aircraft carriers reported third-quarter profit that missed analysts’ estimates.

Huntington, based in Newport News, Virginia, declined 5 percent to close at $41.29 in New York trading. The shares dropped 3.3 percent yesterday after President Barack Obama won re-election and defeated Mitt Romney, who had proposed increasing military spending. The two-day drop is the most since Sept. 29, 2011.

Profit fell to $37.1 million, or 74 cents a share, in the quarter ended Sept. 30 from $51.3 million, or $1.05, in the year-earlier period. Analysts had predicted per-share profit of 80 cents, the average of 13 estimates compiled by Bloomberg.

“Underperforming ships at Ingalls continue to prove challenging,” Chief Executive Officer Mike Petters said in a statement.

Sales totaled $1.6 billion in the quarter, with less-than-expected revenue from amphibious assault ships. Analysts predict 2012 sales to increase 1 percent to $6.63 billion.

Separately, the company announced its first quarterly dividend, at 10 cents a share, and plans to buy back as much as $150 million of shares over three years.

To contact the reporter on this story: Brendan McGarry in Washington at bmcgarry2@bloomberg.net

To contact the editor responsible for this story: Stephanie Stoughton at sstoughton@bloomberg.net

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